Nigeria’s inflation advanced to 9.4 percent in November after a brief respite the pervious month on account of increased transportation costs caused by fuel scarcity which also brought in some knock-on effect on food prices.
The National Bureau of Statistics said on Sunday that the rise in headline Consumer Price Index (CPI) – which measures inflation – inched higher in November “driven in part by higher prices within the Food and Non-Alcoholic Beverages division as well as increases in the Transportation division as a result of shortages in Premium Motor Sprit (PMS) coupled with the knock-on effect impacting transportation of people and goods across the country.”
In November, a litre of Petrol sold averagely for as high as N115.35 across Africa’ largest economy and 8th global largest producer of oil, as oil marketers boycotted petrol importation due to huge unpaid billions of naira oil subsidy arrears owed them.
Figures from the NBS’s Premium Motor Spirit Price watch also released on Sunday showed that on the average, no state, within the month, sold petrol anywhere close to the N87/litre official pump price. Rather, prices ranged averagely between N91.33 (the cheapest in states like Bauchi and Ogun) and as high as N187.50 in Akwa Ibom.
In the Consumer Price Index report, the NBS confirmed that high petrol costs therefore had a knock-on impact on food prices, as measured by the Food sub-index also increased in November to the highest rate recorded this year.
Prices increased by 10.3% (year-on-year) in November, 0.2% points higher from rates recorded in October.
“All groups which contribute to the Food Sub-index increased at a higher pace, with the highest rises recorded in the Bread and Cereals, Oils and Fats, Vegetables; and Milk, Cheese and Eggs groups,” NBS noted.
Core inflation, however stayed at the same rate for the second consecutive month at 8.7%, as rates have slowed or held steady for a quarter.
The Core sub-index was weighted upon by slower increases in multiple divisions such as Clothing and Footwear; Housing Water, Electricity, Gas and Other Fuels; and Furnishings & Household Equipment Maintenance amongst others.
The observed moderation in headline inflation which had remained at the borderline of single digit, especially the month-on-month inflation, provided the Central Bank of Nigeria some room for monetary easing, as it reduced benchmark lending rate to 11 percent last month to support output in the short to medium term.
Keeping in focus the primacy of price stability, the CBN said then that the continued moderation in month-on-month inflation, especially at its 6-9 percent policy target was ‘delightful’ but would need complementary supply side policies as part of an overall strategy to lock-in inflation expectations.
Onyinye Nwachukwu
